Exemption of foreign employees from mandatory social insurance

14. September 2015 | Reading Time: 2 Min

Exemption of foreign employees from mandatory social insurance:

  • Foreign individuals employed in foreign entities (not obliged to register for tax purposes in Albania), who enter in Albania to work in a qualified service/job, based on a service agreement concluded with an entity registered in Albania for tax purposes, provided that such entity is not a branch or subsidiary of the foreign contractor. The period of stay and service should be in accordance with the provisions of the Law “On Foreigners” no. 108/2013 dated 28.03.2013;
  • Foreign individuals employed in foreign entities (not obliged to register for tax purposes in Albania), who are seconded in Albania to carry out a certain job/service, based on a contract concluded between the foreign employer and an entity registered in Albania for tax purposes, which is not a branch or subsidiary of the foreign contractor, provided that the following criteria are met:

               – there is a Double Tax Treaty in place between Albania and the country of the foreign entity;

               – the requirements of the Law “On Foreigners” no. 108/2013, dated 28.03.2013 are met;

               –  the residency requirement and tax obligations arising from the provisions of the Law No.9920 “On  

                  Tax Procedures” are fulfilled;

               – the contracting entity registered with the Albanian tax authorities requests from the foreign

                  employer, on a quarterly basis, a document certifying payment of social contributions in the foreign

                  country, confirmed by the responsible authorities, as well as a list of the seconded employees.

  • Foreign individuals with permanent residence outside the territory of Albania, who act as administrator in a foreign and Albanian entity together with an Albanian administrator. In this case, the foreign individuals will be subject to social insurance liabilities in the country of their residence. The foreigner individual must prove by documentations the payment of social contribution in the foreign state. The residence has the meaning as defined in Law no. 9920, dated 05.09.2008, “On tax procedures in the Republic of Albania”, as amended;

  • According to an agreement between their state and the Albanian state.
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